Madras High Court Overturns Cethar Hospital's License Cancellation in Organ Transplant Case: Procedural Violations Cited

The Madras High Court's Madurai Bench has overturned the Tamil Nadu government's decision to cancel Tiruchi's Cethar Hospital's organ transplant license. The court explicitly stated that health authorities retain the right to initiate new proceedings.

In Chennai, Justice GR Swaminathan ruled on Monday that the Directorate of Medical and Rural Health Services had failed to follow proper procedures under Section 16 of the Transplantation of Human Organs and Tissues Act, 1994, when revoking the hospital's registration.

Cethar Hospital was one of two facilities accused of illegally arranging kidney transplants by having impoverished textile workers from Erode and Namakkal districts pose as close relatives of wealthy organ recipients.

The judge declared, "The statutory procedure has been completely disregarded. No notice was issued, no hearing was conducted, and the materials allegedly collected were not shared with the petitioner. This constitutes a clear case of illegality." Consequently, the court quashed the order dated August 18, 2025.

The court noted that while Dhanalakshmi Srinivasan Medical College Hospital faced similar penalties in the same case, its petition was filed separately at the High Court in Chennai.

During proceedings, Additional Advocate General Ajmal Khan argued that the scandal had "rocked the entire state" and taken on political dimensions, with a Special Investigation Team already established by the Division Bench to investigate the alleged organ trafficking network. He requested the court not to intervene.

Justice Swaminathan maintained that judges must remain "insulated to such probabilities." Quoting Justice Abhay S. Oka, he stated: "Judges should be prepared to deliver judgments that may not be liked by the popular majority. They cannot worry about what people will think."

While approving the writ petition and nullifying the cancellation order, the judge clarified that health authorities remain free to take fresh action in accordance with legal requirements and following proper procedures outlined in the Act.